qualcomm try to sell. making the case for is that the chipmaking part would be a boundary in the patent part of it, the intellectual property of the company would just he a divine firm for example. cory: and those companies that do not manufacture their own ships have a lot higher margins. you can see why wall street would like it and why qualcomm would like it and why the owners of the company -- erik: wooden qualcomm say that there are advantages to be had by at least keeping some of your production integrated? cory: qualcomm made the case all the way back in 2000 and they would be better valued as separate entities. one thing we are starting to see, every company in every situation is different. we see a pattern with some of these spinoffs and there may be a groundwork laid, where the company that once made the case they have to be integrated are now sort of establishing that integration through long-term contracts and long-term exclusive partnerships keeping the benefits of the synergy, if you will, wh

still ahead, qualcomm, we'll take a look. analysts downgraded the stock ahead of this report after the break. rough day for home builders. we'll tell you the one name. more "fast money" straight ahead. >>> qualcomm falling in the after hour session. chris rollins has been listening to the conference cull. chris good have you. we should note you did downgrade the stock shortly after the pare down information came out. >> that's right. >> now what with qualcomm stock? >> it was a mixed bag, mostly negative today. the good, the quarter wasn't that bad. they also announced a cost-cutting program so they are looking into ways to hopefully help operating margins. the bad was guidance. and they really talked about samsung, this product cycle moving away from qualcomm and they actually admitted it was the next note as well as the galaxy s6 that we suspected they might move away from. the last reveal was really pricing and that's pricing both for chips as well as hand sets. they make about 3% royalties on the end cost of a a hand set.

qualcomm and apple look like they're on the outs. is all hope lost for qualcomm? is the deal making on wall street just getting started? i'll tell you what other stocks i think might be in the cross hairs. why don't you stick with cramer. >> don't miss a second of "mad money." follow twit twit have a question? madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something inhead to madmoney dot cnbc.com. excellent looking below the surface, researching a hunch... and making a decision you are type e*. time for a change of menu. research and invest from any website. with e*trade's browser trading. e*trade. opportunity is everywhere. at mfs, we believe in the power of active management. our teams collaborate around the world, which leads to better decisions for our clients. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. boy: once upon a time, there was a nice house that lived with a family. one day, it started to rain and rain. water got inside and ruined everybody's everythings. the house thought

qualcomm is seeing a drop of 2% in after-hours trade.estimates, but salesman. -- sales mix. qualcomm blames it on a decline in share at a large customer. we know that samsung was not using qualcomm in some of its galaxy s phones. that might be a precursor of who this a customer is. i like to add with facebook. for the first time since 2012 mark zuckerberg and company have missed wall street's revenue estimates which will lead to more scrutiny on how facebook is its money. advertising is what this is all about. advertising makes a 94% of facebook annual revenue. you can see how it is breaking down over the last 11 quarters. the green bars show mobile advertising. the orange show desktop advertising. clearly desktop advertising has stagnated. it really hasn't gone anywhere, whereas mobile advertising has multiplied and expanded rapidly and is now more than double the revenue that desk top advertising brings in. alix: thank you scarlett. cory johnson, from bloomberg west is joining me from san francisco. what is the biggest standout? cory:

>> i don't know about rather rather but i'll rather qualcomm. as disappointing as it is, it's an anchor on the stock and i think it supports you around $63, stock's at 67 and changes. if you look at the dividend growth and cash on the balance sheet, a lot has been balanced in and i think the news is in the price and until we hear they're out, i think they're in. >> up next, traders on this desk are certainly fast but today they're also furious. a look at the stocks that have these guys up in arms. and a big day for crude, back above $52 a barrel as saudi arabia said it going to raise prices to asia. a look at the ways to play the volatile oil trade. >> when i'm "fast money," it's a complete rush. it's all about the trade. >> when i come to the show, i spread the facts. >> everyone on the show is a professional trader. >> we put our monday where our mouth is. >> we're always trying to look for what's the next trade, not what is the obvious trade but what's the trade that nobody what has it and a look at, nobody has put on that you can put on tomo

now it looks like qualcomm as well.comm beat on revenue and adjusted eps for the quarter. they're reporting the second quarter but a big miss on guidance. qualcomm has a statement about that. first let me get you the numbers for the second quarter they're just reporting. revenue of $6.89 billion versus 6.83 expected. and eps adjusted eps of $1.40 versus 1.33 expected. the guidance for q3 wall street was hoping for something close to $6.5 billion. qualcomm guiding to a midpoint of $5.8 billion and an adjusted eps, wall street wanted 1.14. qualcomm got into a midpoint of 93 cents. qualcomm saying in the release, i'm just taking a piece of this from the ceo, we are reducing qct outlook, chips, primarily due to the increased impact of customer share shifts within the premium tear. and a decline in our share customer. read that as they didn't get the galaxy s6 from samsung. in addition to our ongoing expense initiatives, we have initiated a review of the cost structure while at the same time extending our leadership position

they need to diversify their revenues. >> qualcomm and, for instance -- >> qualcomm and a zilinx, for example. >> thank you for coming on. in terms of activity, did you see activity in zilinx? >> yes. broad com like i say for over a week now and probably much of that because of some of the comments that romit was making. >> let's get a news alert on ebay. let's get to josh lipton. >> some breaking news from dow jones on ebay and paypal. specifically ebay and paypal have set a five-year operating agreement. paypal agreement bars ebay from creating a payment system and paypal is barred from creating a marketplace. specifically dow jones saying ebay has agreed to ensure that 80% of gross merchandise sales on its online marketplace are rooted through paypal for the next five years. for its part, paypal has agreed to pay ebay a commission of its sales on the marketplace rise above that mark. new details emerging about what the relationship between them will look like when they split up later this year. >> thanks so much. it seems like a one-way deal because -- i mean, what's the likelihood

jana partners has $2 billion invested in qualcomm, but walk-on -- qualcomm has a market capability ofwill that change the market of activists cannot get done what they have been so successful at doing, which is getting ceo's endboards to capitulate? gina: it could, and i say that because activists have had a substantial part in driving share reduction dividend payment increases, share count decreases by way of their activism. the reason it may not matter much is because earnings may grow faster going forward. earnings have been growing slowly so they have impacted share count and cash deployment. these are factors that have impacted share prices. if we get earnings growing much more quickly, revenue growth driving earnings growth, reduction doesn't mean as much. it blunts the voice, because success is more ample. in an environment where success is fairly limited, they have a much eager impact in my view. it depends going forward how successful the earnings stream can be on organic growth. erik: quickly, before the closing bell rings, have we seen activism in the bond market yet? gina:

like qualcomm. sandisk has fallen behind. want to own sandisk, but enough with this second-tier company if they can't beat the third guy, you know what? just forgot about an analyst, go find another horse to bet on. >>> jetblue, by the way, almost 20 bucks now. airlines are turning into an interesting story. we got the results of the annual airline quality rating. phil lebeau is at chicago's o'hare. good morning, phil. >> good morning, carl. we have the top and worst rated airlines among the 12 that are rated by wichita state university and embry riddle. at the top of the list virgin america, followed by hawaiian delta moves up to number three, rated as the most improved and jetblue at number four. converselity bottom of the list three regional envoy/american eagle as the worst, express jet, skywest and at number nine the worst rated full-service nationwide airline is united airlines. you might be saying to yourself there you go. if you had united as an investor, would your performance reflect that? no united versus virgin am

i think qualcomm goes lower. intel hasn't traded that well the last couple months. >> what do we do with the earnings winners? we have not seen a move like microsoft's move today, ever? >> microsoft is a case in point you saw the news monday morning. technically so you know the stock is at the 200-day, and hasn't gone through the 200-day on the way up since october. when you had a lot of dreams being priced into this company. a lot of the same old stuff. this is a company for the last six quarters has missed the mid-point guidance of the street and they did it in the numbers. next week the analyst day, the build conference, things you could get more news. why would you do something after that move before that event, i would be a seller monday. >> you guys have been skeptics on microsoft, sitting here a week ago a ahead of earnings i did not have a single buy into the earnings. >> a shock. >> shocky move but to tim's point i don't know if this is his point but there's secular changes going on with microsoft. they

interestingly enough, qualcomm actually closed the day lower. >> off. >> off. also, dan nathan was quicker than the ticker on this move. listen to what he said about qualcomm back in february. >> this thing looks like activist bait to me, especially when you consider the fact that they have misexecuted. china was a big problem. they had 25% earnings growth in 2013 and it dropped to single digits and now the samsung thing could be an issue. so the company moved very quickly to make melon kof the new ceo when he is on the short lift for microsoft. i don't know, man, he seems like he could be pushed around a little bit by activists. >> to do what? to return a lot more cash. when you think about it, if they're not going to get the growth, you might as well be buying back a lot more shares. >> all right, nice call, dan nathan. >> nice call but the stock is down 10% from that. here is the thing, this is the kind of environment we're in here, too. investors think the thing is broken and that's the case. to me you do buy back the shares. they have no debt. when you thi

qualcomm, at&t reporting after the bell. all-big movers in the after hours. we'll tell you,000 trade these stocks and follow the conference calls. let's kick it off here with facebook. pete this, is a case where the options market got it wrong going into the print. >> although it's been interesting ever since they reported their numbers. the mobile numbers were absolutely staggering when you look at the mobile active users and daily mobile active users the percentage gains are what zuckerberg september out when he was trying see what he could do with this company and what they could do in term of growth. we've seen that stock go into positive territory. now i think it's down a dollar and a half. tomorrow morning as the dust settles we'll start to see what the direction of facebook will be because it was down almost $2 after the earnings. >> i think you have to buy them.

you won't find a chip made by qualcomm.a teardown of the phone, they rip it open, every tiny little part of it, they pick apart, and they found that samsung has opted to use more of its own chips sold by at&t. the news weighing on qualcomm's stock. it's down just a quarter of a percent. but let me tell you something, what a leadership role qualcomm has in smartphones. you win some, you lose some. we're watching qualcomm. california, watching that too. cracking down on more than just californians front lawns. jerry brown telling everyone to serve water to customers only upon request. i've been in california for many years. they've been doing that for a long time. you have to ask for it. now what? should this come as any surprise? us restaurants use 25% more water than any other industry besides farming. a california based pizza kitchen that has been around for 30 years with skin in the game weighing in on what the drought could do to its business or what it's doing to anticipate any problems. we bring in gj hart. california

but what do you make of qualcomm with those gains? sense to us some street with the big technology companies. charles: is that the street saying we will not be pushed around? >> it is possible qualcomm will eventually enact changes. charles: so is the buy on weakness? >> and expect more of these situations than this is the systems to be next to separate their technologies. charles: the earnings for tomorrow the direction for the entire summer. when we come back. ♪ ♪ if legalzoom has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. new york state is reinventing by leading the way on tax cuts. we cut the rates on personal income taxes. we enacted the lowest corporate tax rate since 1968. we eliminated the income tax on manufacturers altogether. with startup-ny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. all to grow our economy and c

. >>> qualcomm is the other big story today.ana partners asked to spin off the chip unit and other measures to boost its stock price. founder barry rosen seen it talked with david in the last hour, here's what he said. >> we are convinced that the board and the management recognize their issues. we're convinced that they are trying to do the right things, and we're optimistic that they're going to. you know, we have advocated a number of steps, not just to split up, in fact, what we think they ought to do is a transparent review of the businesses and determine whether or not it makes sense to do either a partial or a full split. we are not definitively saying that they should split it up. >> they have a $2 billion calling card. they want them to cut costs, increase the buybacks. >> the sense i get is that a lot of people in tech recognize that if qualcomm doesn't have the leverage that they have had, a lot of people saying to my, executives saying to me, when you look at the pressure that china has put on several tech companies,

asking qualcomm to spin off its chipmaking unit. qualcomm are down 11% in the last 12 months. and a spacex rocket will make the company's six resupply mission to the international space mission today in florida. the unmanned rocket will carry about two tons of supplies including an espresso machine. all eyes will be on the launch rocket on a floating platform in the atlantic. it has not been able to do that successfully so far. those are the top headlines. coming up, we will speak to the ceo on how the booming fantasy for -- fantasy sports has made its way. and senator angus king on the iran dear -- deal, foreign policy, and hillary for president. ♪ matt: john kerry try to sell skeptical lawmakers on the iran nuclear deal. a bipartisan senate bill would give congress and up in debt -- up or down vote on a deal and remember president from waiving sanctions against iran during a 60 day review. live with senator angus and independent from maine who sits on the intelligence and armed services committee. peter: thank you for the time thi

at times account for most of the qualcomm profit.e than a dozen big retailers including target and gap are being asked and the way they generate employee schedules. the new york attorney general's warning retailers that requiring hourly workers to make ourselves available on short notice maybe illegal. the on-call shifts may force workers to check in a few hours in advance to you they are needed. you report shows groupon market value may be as high as six billion dollars. teen monsters that the e-commerce company could the best for businesses including a south korean daily deal site. he says sales could mess the company as much as $730 million. the market value is about $5 billion but munster says it should be 20% higher. sprint is going to start making house calls. the wireless company rolling out personalized service in kansas city kansas and miami, florida and chicago, illinois. subscribers to upgrade my phone with a trained technician that will come to their home or office. that is a look at the top stories we are following on th

hershey, qualcomm texas, 3m johnson controls.dozen or so. >> i look at these companies and think how many of them have the overseas exposure? how many have something to do like look at union pacific. which was at critical level. it's frack sand and coal. and the west coast port situation. a lot of excuses. i think i will tell you, there are some excuses, but a lot of what they do is get their head beat in. >> i've seen a few mentions of higher than expected tax rates. the usual suspects. >> some of that stuff. let's put it this way. how does andrew livers deliver this is numbers? getting out of the commodity businesses, going higher up the food chain lower the cost dramatically. i like that. that's self-help. they are doing what's right versus dupont, which some people were questioning. >> yes. >> questioning dupont. >> in terms of guidance. >> yeah. dow's guidance was amazing. >> we moved to the lower end of a range. that's why we have a range. we have a range for a reason. >> dupont has been a good performer. dow is shining. th

something that qualcomm already considered, right? if you go back around 2000, they are a company that talked about hey, maybe we ought to pin this out, decided they didn't want to do that. the one thing you can see that there is some common ground though, scott, when you're looking at what they want to get done. they talk about repurchases, they want an acceleration, seems to me like qualcomm's already moving in that direction anyway. they announced that $15 billion buyback, 10 billion of it within a year. i think they are both working together, doesn't sound to me like this is really their butting heads right now, seems like they're trying to work together. >> jim, you owned the stock, if you throw me the chart back up, guys, if you wouldn't mind, please. if you look at the actions and the stocks, the news breaks that jonah is there -- >> 3%. >> not exactly the most adversarial sounding at least activism going on at the current time. and i just wonder if the stock backed off a bit as a result of that, maybe the market doesn't expect

the executive research firm looked at firms filing their proxies by april 3rd, the findings put qualcomm in the number three spot with a more than $60 million paycheck tied to an option award. number five cbs health's larry mur low took home just over $24 million. the early survey shows median ceo pay rose 5% last year to over $14 million the average showing no change at close to 16 million. professor robert jackson saying the increase reflects the adoption of pay for performance. >> american corporations have performed well in the last two or three years for a variety of reasons. >> big names with big paychecks. ceo's, firms, whose revenues are too small to be included in the top 100, or firms that filed their proxies too late to be incl. >> this includes discoveries, taking home 156 million, he would have been at the top of the list. with discovery's revenue just over 6 billion, it's too low to put it among the 100 biggest firms. less moonves missed the cut as . still with the pay package of over $57 million, moonves will sure to be at the top of the list when the final one is publishe

you can see that qualcomm has had a rough year. we're watching the stock closely.lary clinton has indeed put her name in the running for next president of the united states. while she may have a few obstacles ahead of her, try many republican candidates, it doesn't look like raising money will be one of them. the numbers are staggering, charlie. where will she get it from? charlie: the number that has been published now is $2.5 billion. we should point out that mitt romney and president obama when they ran in 2012 combined raised $2 billion. liz: well, inflation. charlie: some inflation there. what's the inflation on on that? she's talking about 2.5. i will say this, it sounds daunting. i've been talking to wall street executives, to the man and woman, they say, if she wants to hit it, she will hit it. she has so much headwind helping her get there. number one, she -- liz: tailwind. charlie: yeah. tiltailwind. pushing her forward. got you. thank you. liz: you're welcome. charlie: you're from california. that's why you know. the tailwinds. what are those tailwinds.

shares of qualcomm down. revealed they actually do not contain an expected modem from qualcomm.eviously revealed the s6 did not have a qualcomm processer. that's taking that stock down. also shares of zillow slipping this morning after getting downgraded to equal weight over at barkley's. bark lays says still bullish long term. they do face short-term difficulty. you can see investors are trying to digest that call as they figure out the future. >>> when we come back, he was a top ranking executive at or call. now he's using amazon and the cloud to power his new business. >>> plus, this startup is getting 60 million in new funding. the ceo of zen is with us. and the live streaming app race is heating up. we'll tell you why it could be over just as quickly as it started. "squawk alley" is back in a moment. [ male announcer ] some come here to build something smarter. ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but

powered by qualcomm.es that are falling. southwest at the lowest level and worst price since january. oil prices continue to rise. it see signs of growing demand. matt: a bright spot at the end of the tunnel. year to date there has been 450 billion dollars in u.s. m&a activity. a growing part is the technology industry. he is bullish on dealmaking in the year ahead. thanks for joining us. let me first ask you about a market with lisa and peter here. it was a great year last year. how do you expect this year to play out? james: is driven by an -- by investors needs to get into the key areas. it is mobile social data, analytics, security. that should continue to drive a lot of demand. the ipos have performed very well. so the market window is open. matt: i'm guessing cloud is one of the biggest areas of those you mentioned. of those of the five you expect to drive growth more than the others? james:: we's -- we expect to see a lot in clouds. there are a lot of ipos in this space. if you think about the brea

an activist is urging qualcomm to consider breaking up.e being asked to think about spinning off its chip making unit from its patent business. the patent account from most of their profits show qualcomm is down 11% in 12 months. in orlando there's been a fatal crash at a exotic car racing ride. it crashed into a guardrail killing the passenger and injuring the driver. they pay up to $400 to drive with a professional. disney is not commenting on the incident. tom: he's caught between two kings. poor john. the debut of "game of thrones" went smoothly last night for the most part and is the first time h. -- hbo's package has been offered outside a tv bundle. some sling tv customers reported delays and sing said the problems were reduced after updated software. hbo says four episodes of the show linked online hours before the day but reportedly were downloaded illegally 100,000 times including the keene household. it's exciting. the only thing i watch. the dragons got bigger. the dragons got bigger. and it's "game of thrones" and a battle bet

you see qualcomm stocks moving to the up side here.d instead of doing calls and stock, they did puts and stock. it gives you the same pattern. it's a v-shape. in other words upside or down side in this case could be quite large for qualcomm and because the activist involvement. i believe it's an upside play. and the third one we're going to give you, judge, imax. this is interesting, every time we've seen this type of activity in the past it's played out pretty favorably. this time what they're doing. stock moving towards the highs, stock was in negative territory when the trade initiated. the june 40 calls. upside,' somebody looking for the stock to break out and get to new highs, explode to new highs if they get that case. they paid 60 cents for the calls, stock trading in the 36s at this time. they've got earnings on april 30th. >> and you've got the ajengers, which could be one of the big bets. >> doc said his ownership stake in the other two you're in this? >> i've got calls in there. i grabbed them just before the show. like abou

qualcomm is also a big player in this.re a number of people that want to take that business. how do you think -- what are they going to say today. ? it's the outlook that we are going to care about, right? anon: a lot of that will be focused in the q4. they are doing really well in pc and have great market share. they are doing well in the data center which is a grid -- a good growth market for them. so the only market adjacent to this is the mobile market. matt: massively untapped. qualcomm is just dominating in that business. qualcomm in yellow intel in the blue at the bottom which is barely existent. and not climbing. anon: qualcomm has potentially been losing share in some key players, such as samsung. lower end players like media tech are gaining share. but there is potentially room for another player such as intel. intel has done a lot in terms of tablets and is growing in mobile phones. i think we will see in 2015 and 2016 how they fare. but it's too big of a market -- matt: they have done fairly well. but when you

there's a name that's down. >> qualcomm has been going down and down and down. why?ause we knew they weren't in the samsung. so this teardown organization -- hey, thank heaven. you tear it down. i don't want to tear it down. this is something that is so well-known well-known. i want to talk about sandisk for a second. these analysts will not give up. they will not give up. so today what do they say? sandisk is down so much it's going to get a takeover bid from western digital. you know it's so bad, it's good. >> i mean on qualcomm they did not get the benefit from that enormous share buyback that i believe they hoped they would in term of the return of capital of the shareholders. people were well aware that the relationship with samsung had become much more tenuous. >> that's true. so it has. >> they did settle china. that was a huge, huge thing for them. i think the company in terms of its approach to its future really needed to get that done. it was a big number. the question is how many other things are they going to be able to sell chips to. >> i just can't go t

facebook and qualcomm.we look at overall smartphone chip shipments and then microsoft and google the next day. there's a lot. >> we'll get some sleep this weekend. thank you, guys, good to be back. jt. >>> dow is down 240, let's get over to headquarters and wopner and the halftime report. >>> thanks very much. split screen today because there are two big events that we continue to follow and one is on left of your screen. we're in fact you can see our own john harwood getting ready for the president and the italian prime minister to meet the press, discussing a range of topics relative to investors. the italian economy especially as greece's future hangs in the balance as it relates to its place in the eurozone. and on the right, certainly not playing second fiddle by any stretch. is what's happening in our financial markets today. there's a look at dowes

qualcomm -- there was a tear down.now how these companies and websites hair down smartphones and see what's in there? the samsung lxe s six smartphone was torn apart and it does not have the qualcomm modem. previously people realize when at&t advertised on its website, that it does not contain a qualcomm processor that was in the previous model. some say that's an indication samsung will try to stuff its own processors in whenever and wherever possible. brendan: i own a garmin gps fitness watch and i would describe myself as a lagging indicator. stephanie: do you use it? brendan: i don't use it because you have a smart phone that does everything for you. stephanie: i own one. it's still in the box. brendan: that's why they are having trouble. president obama begins the are jewish tax -- arduous task of convincing congress the plenary agreement with iran is the best bet. he says it's not a retreat from america's military superiority or support of israel. president obama: what i'm going to do is make the kinds of commitm

it's a development prototype i wear with qualcomm technology inside that if all goes as planned, will make your future driving experience safer and easier. >> it could be the next big thing in your car. a pair of glasses. these prototype specks come from qualcomm and they call it augmented reality. >> you look through both lenses and see content as if it were in the physical world. >> you wear them while you drive and, unlike google's glass, this pair looks out for you giving you information like if a skateboarder is sneaking up on your blind side. >> and that's x-ray vision. you can use these glasses to see straight through sheet metal in your car as you are parking. >> besides x-ray vision made possible by cameras outside the car, you'll get speed limit data and other safety tips. when you drive the glasses hook up to your smartphone. if you get a text message on the road you'll get a prompt here to listen to the next message and won't be distracted by looking away. the goal is technology to make you less distracted. >> it allows you to focus on the read. keep your head up. keepior

cfp -- work with the highest standard. >>> qualcomm has been a big loser.raders are expecting to see up side by next year. dan nathan has the action. >> it has been a big loser. down 1.5 times of the year. when the stock was 67 1/2, it looked out to january expiration and traded 20,000 on the calls on the up side. they paid 80 cents for that. $1.6 million in premium. really what they have done is to find a range over the next 10 months where they would basically put the stock on january expiration at 60/80 to the down side, down 10%. or get long on the stock at 70/80 to the up side. what's interesting about that, when you look at the chart, one-year chart, look at the level. 60 is the support. 70 has been the resistance. they have long exposure to the up side and the down side >>> we'll be right back. stay tuned. when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. all on thinkorswim. from td ameritrade. there's nothing more romantic th

these prototype specs come from qualcomm and mini they call it augmented reality. >> you actually look through both lenses and see content as if it were in the physical world. >> reporter: you'll wear them while you drive and, unlike google's glass, this pair looks out for you, giving you information, like if a skateboarder is sneaking up on your blindside. >> that's x-ray vision. so you can actually use these glasses to see straight through sheet metal in your car as you are parking. >> reporter: besides x-ray vision made possible by cameras outside the car, you'll get speed limit data and other safety tips. >> for example, when you drive, the glasses would hook up to your smartphone so if you get a text message on the road you'll get a prompt here to listen to the text message, and you won't be distracted by looking away. >> reporter: the goal is technology to make you less distracted. >> it allows you to really focus on the road. as we say head-up display, it literally means keep your head up, keep your eye on the windshield and then all the information is coming into the lenses whi

>> qualcomm doesn't have the manufacturing, but if they were to split off the licensing business -- i'men i want to get exposure to mobile, i buy qualcomm because they're ubiquitous in everybody's device. it's been a fantastic stock to own for a long time. >> if you could put those two together, could you rule the world. >> now we're talking. look, we drift it up right here today. >> finally check out zillo, shares a shares are slipping after the company slashed revenue guidance. below the $753 that analysts were expecting. spencer ashcroft tells us truly a business softer than expected because of the a battle with the ftc and saying that 2015 will be a little messy. but that 2016 still looks solid. we talked a moment ago about m&a. this's there's risk in the execution and there is taking longer than expected. >> this was a huge miss on an ebita basis and the stock has been pched 12%. it should be down 40%. this guy is getting a pass. he does one more like this and he'll lose confidence in institutional investors. it was a big miss. >> in a case like this where you've got huge m&a that'

with new profits on inside, better performance and battery life versus qualcomm.why you're seeing qualcomm dip in terms of their stock. as far as this device goes. couple reasons why we like it. two, the camera is better in some respects than iphone. the design. and lasts longer on a charge. gerri: we it -- liz: we put it up against the competition that is the issue. that gravitational pull of apple's solar system. >> yes. liz: you've got everything that apple, people say it all syncs together. why do i need this if i have this? >> that is the biggest challenge. not just about the device itself. everything that it connects to. say my mac book for example, i get text messages on my macbook, or with the apple watch, they expected to sell 15 million of them. but it doesn't work with samsung products. its with the suite of system that everything connects together. that is what is missing from samsung's puzzle. liz: but can the phone beat numbers out there, also competitors? everything from the lower-priced japanese offer chinese cell phones out there? >> sure. igned t

qualcomm buffeted by the inches with chinese regulators.eir message sfwg forward after this call. there's room for optimism perhaps. if they tell a new story. >> we didn't mention coca-cola, young or chipotle. on the earnings parade. clip oatly seeing weakness. >> chipotle puts up 10%, it's a disappointment. mcdonald's and yum do not as badly as feared and suddenly their shares are raling. >> worth noting, 72% of companies have reported earnings above estimates. so maybe expectations should have been lower for a lot of those companies. kelly, good to see you. john, good to see you. that's all for "squawk alley," it's noon, let's send it to scott wopner and the half. ♪ ♪ >>> let's heat our starting lineup for today. steven weiss is the managing partner of short hills capital. jim leb everyone enthal is manager of asset management and john and pete in a jeer ynajari option monster. >>> high frequency fight, latest on the trader accused of contributing to the 2010 flash crash and whether your money w

we have the analysts tonight with the qualcomm downgrade.also taking a look at microsoft. wells fargo upgrade it to the valuation range of $46 to $50. says the consensus estimates clearly needs to come down. the analyst does like to focus on mobility and cloud. also providing a cushion at the $40 level. microsoft, we should note, bri, is down 20% from its 52-week high. >> i was just going to mention that. we had a little brief subliminal moment with todd gordon. all of a sudden i got -- >> you can get the chart read on microsoft. >> it's like i want to todd gordon and coke wra cola. you just didn't see it. microsoft to your point, down $8 from its highs of last november melissa. ouch. >> stock three. priceline. august research starting coverage. they have got a bullish $1,480 target. the current price. they issue a five-year earnings growth forecast of 20%. they say that the shares are very favorably valued at 16.5 times next year's earnings. >> it's february levels. there had been a lot of concerns about europe when had it comes to pricelin

namely a potential split of qualcomm into the intellectual property and ship business. here's what he had to say. >> we had constructively discussions with the company. we have met with them multiple times. we are convinced that the board and the management recognize their issues. we are convinced that they are trying to do the right things and we are optimistic that they are going to. we have advocated a number of steps not just to split up. the fact that what we think they ought to do is transparent review of the businesses and determined whether or not it makes sense to do a partial or full split. >> it is interesting when one does the math. there is the potential to unlock value with the company given the multiple that the property portfolio would command and the potential multiple you would get on the chip business. a statement released not long ago and the board of directors and management review the corporate structure. prior reviews have concluded the business model and create more value for stockholders than could be created for alternative structures. they wil

samsung electronic also came out and said it did not use qualcomm chips in its latest smartphone.o we'll watch out for that sector as well. that's all for me. back to you. >> okay ramin. thanks a lot for that update. well, officials at the japan business federation or keidanren, have compiled a proposal to be presented to the government for its discussions on energy mix. they are proposing that the ratio of nuclear power reliance in 2030 should be more than 25% of the country's energy needs. >> translator: keeping a certain level of nuclear power plants is necessary for japan's energy policy and for global measures to fight climate change. >> keidanren officials say the ratio of renewable energy sources such as solar power should be about 15% and thermal power should cover the remaining 60% or so. they say their proposal is for a stable supply of power at economically efficient prices. officials also say that in addition to restarting nuclear reactors at power plants that have been confirmed as safe consideration should be given to rebuilding such facilities. people at the governm

it is argued in a powerful force, but you get the sense that for example with them going after qualcomm, i hate to say that it is tilting at windmills, but activism can only do so much, especially with companies that are as large as qualcomm. scott: i think activism is a major factor in corporate america. even on what you read and analyst reports they're so much that happens beyond the scenes. -- behind the scenes. yet the figure out what an activist wants and how you can get have that. erik: you have conversations like that with your clients? scott: all the time. erik: what do we need to do to make sure there are no activist knocking on my door? scott: what might not activist attack us on? erik: that is a conversation that 10 years ago known would've had. scott: right. if they had legitimate concerns if too many businesses were undervalued or under leverage, it be a hold friday of things could let's get ahead of them. erik: is that going to stop ceos from taking mna risk? when i say risk it is not about cutting costs included -- and boosting the bottom live that way. it is being aggres

the qualcomm news another example.ink continue to evaluate the portfolio portfolios. one of the more interesting situations, you have a guy who built up and now devesting a majority of the brand over the next couple of years. so you're seeing more and more of this across all sectors of the economy. >> small is beautiful. big is not. >> i think focused is. it does not have to be small, but focused. the notion that size for size is sake. that didn't make sense once upon a time. >> does that not surprise you if it does not come back around. this is the weirdest pendulum swing. in favor out of favor. >> part of the nature of capitalism. you have the conglomerate era of the '60s and '70s and now it's swinging back, again. so, you'll see this over long periods of time. i think, you know much like medicine, your last segment. modern management signs continue to improve and things makes much more sense. the notion that you should stick to your competitive advantage is a sensible one that should always prevail. >> can i ask you

emily: also some drama with qualcomm.ory: the anticipation of the.com, the company said, when the bubble crashed they pulled away. now they are saying, split into -- split in 2, could be a big change. emily: thank you so much. coming up, google getting into the arms race and the first episodes of game of thrones have been leaked online. how big of a blow is it? we will discuss that later on bloomberg west. ♪ ♪ emily: this is bloomberg west, we refocus on innovation tech knowledge he, and the future of business. hillary clinton is running for president, if you had not heard, and she already received endorsements from politicians in her adopted home state of new york, including governor andrew cuomo and senator charles schumer. not endorsing her yet is new york city mayor bill de blasio who managed clinton's 2000 senate campaign. mayor de blasio: i want to see a vision. that is true on all visions. it is time to see a clear, bold vision. >> you are not yet endorsing her? mayor de blasio: until i see a vision of where the ca

qualcomm is not welling investors with its orderly checkup. they posted it 36% drop in second-quarter profit and says many chinese companies are still not complying with licensing agreements. now to our lead. facebook's first-quarter earnings reports. for the first time since 2012 facebook did not hit a home run. revenue was up 42% to three and a half billion dollars. profits drop 20%. still, facebook continues to post huge user numbers. monthly active users are 1.14 billion. mobile users are 1.25. shares though, are falling, almost down to percent. joining me is cory johnson. the revenue not looking as great, but engagement looking pretty good. guest: get on facebook for the long haul. there is not the same excitement , not the big beats, but if you look at the engagement numbers, all of those numbers are progressing year after year. if you take the long haul approach to this, that backs do have an impact -- setbacks do have an impact, but there's nothing that concerns a. emily: i sat down with mark zuckerberg in december and talked about the

brad: this is part of the qualcomm xprize competition. this has about a year left to go, and the winner of it is going to get $7 million. in total there are about $10 million to be won, and includes companies from around the rope canada, india, as well as to slovenia and ireland, so a lot of people are trying to make the tricorder of the future the tricorder of now, so this is definitely something to take a look at. brad: thank you, ramy. ♪ brad: this is "bloomberg west." i am brad stone. after leaving groupon, may send launched an act, providing audio tours of cities based on your location. thanks for joining us. when i last saw you, we were traipsing around. andrew: i knew you were going to bring that up. nothing funnier. brad: that was the launch. that was, what, four months ago? andrew: we launched about two months ago in the app store. it was the beta we were doing. we have got 90 tours launched just in the san francisco bay area, and each one lasts about 45 minutes, and it takes you to a different part of the city and helps you see

emily: we should mention that qualcomm who is a big apple supplier with chips has big news there.ig news there. paul come back in 2000 was one of the biggest box in the.com bubble. they said the company shouldst split in two and when the bubble crash, they stepped away from that. now they're saying split it to and get more shareholders and it could be a big change for chips. emily: that is cory johnson on bloomberg west editor at large. we are talking about google getting into the battery arms race. the first four episodes of "game of thrones" have been league online. -- leaked online. how big of a deal is this for hbo coming up next. ♪ >> is bloomberg "west" were refocus on innovation technology and the future of this. hillary is running for president if you have not heard and already received endorsements from politicians and home in new york in moving governor andrew cuomo and senator charles schumer. not endorsing her yet is the mayor who managed her 2000 senate campaign. right i think like a lot of people laugh -- in the country i want to see a vision. it is time to clear, ol

and we are counting down to earnings from qualcomm, facebook and ebay. "street smart" starts now.e top stories we are watching ahead of the closing bell. goldman sachs is seeking to raise about $3